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5 May 2001, USA

Hello Dr. E-Commerce:

I would like to know what are the advantages and disadvantages of doing e-business in Asia.

I know there's a person who has asked you a similar question before but this time I am specifying "Asia".

Thanks a million.

Joanne

Dear Joanne:

You're welcome a million!

The general advantages and disadvantages of e-commerce hold true in Asia. It is also important to bear in mind that Asia includes global e-commerce leaders such as Hong Kong and Japan as well as countries such as Burma (Myanmar) which have outlawed the Internet. So it is difficult to make Asia-wide generalisations.

That said, Asia is home to millions of small manufacturers, many of whom are exporting their products. e-commerce allows them to inexpensively market their products at the global level - and that's a real advantage.

In addition, many countries in Asia have long chains of intermediaries between the producer and end-user. This increases the cost to the end user without adding any additional value. The Internet can help reduce the number of intermediaries. Which is good news for consumers and small companies (who are end-users) - but not for the intermediaries who may find themselves out of business.

On the down-side, telecommunications costs in many Asian countries are very high (and quality is often low) - while incomes are low, making e-commerce a more expensive solution than it need be - even at the simplest level.

Finally, in some Asian countries, incomes are so low that most people cannot afford even simple dial-up Internet access. Indeed, in many areas, telephone lines do not even exist!

Good luck,

Dr. Ecommerce